What are the Various Riders Typically Found on Physician Disability Policies?
When you have a disability insurance policy, your income is protected if you are unable to work. Riders allow disability policies for physicians to be customized to specify different benefits and coverage. Several riders are considered a must-have for a physician. Your policy premiums can increase in relation to the riders that you want to include. Here are various riders that you should look into regarding your disability policy.
Cost of Living Adjustment (COLA) DI Rider
Cost of living adjustment (COLA) is an optional add-on that will help any long-term disability benefits you receive to keep pace with inflation. People with disabilities can’t increase their income to compensate for inflation; therefore, this rider will protect them in the future. Your monthly benefits will increase annually, usually 12 months after becoming disabled.
Partial or Residual Disability
Disability benefits are usually paid because you are unable to work due to an injury or illness. When you become partially disabled and can still work in some capacity, you could benefit from partial or residual disability coverage for any earning power you lost. This is calculated on the percentage of loss you have suffered. It applies to both temporary disabilities and long-term disability for as long as the policy’s benefit period.
Medical Own Occupation
This type of disability coverage is determined by your inability to do work in your chosen profession. By contrast, “any occupation” coverage doesn’t consider you disabled if you can work another job to which you are suited. You may not receive any benefits if you can gain employment in another job. As a medical professional, you want to ensure that you get a good medical own occupation rider that will pay when you cannot perform a vast majority of your duties in your occupation.
While disability insurance replaces your current income level at the time of your injury, what about your future earning potential? A future purchase increase rider enables you to receive an increased amount of coverage without undergoing additional underwriting or a medical exam. This is important since the earning potential as a physician will greatly increase over time.
This rider ensures that you can gradually build up your practice again after a disability event. The coverage allows you to gradually build back up to your normal workload without the loss of income.
Make sure you understand which riders are best for you. If you have a long-term disability, you need to have fair compensation for your loss of work. Various riders will increase your premiums but may be essential for your future well-being. If you have any questions about the correct coverage, please contact the medtigo team to learn about all of your options regarding disability insurance.